Several South African companies are navigating major strategic shifts through rescue plans, delistings and partnerships in key industries. Tongaat Hulett advances its recovery, while Mahube Infrastructure eyes privatization and Merafe Resources seeks energy solutions. British American Tobacco anticipates steady growth, and BHP bolsters its operations with new investments.
Tongaat Hulett's business rescue process continues into 2026, with Vision Sugar and the Industrial Development Corporation expressing ongoing commitment to the approved plan. Efforts to transfer rescue funding to Vision are progressing through a formal mechanism, despite delays in refinancing discussions. Payments for December salaries, 13th cheques, growers and suppliers remain on schedule.
Mahube Infrastructure faces a potential transition to private ownership as investor Sustent offers to acquire up to 18.5 million shares at R5.50 apiece. Shareholders must decide whether to sell or retain holdings in the unlisted entity; inaction defaults to selling. The company's shares currently trade with low liquidity and a 40% discount to net asset value, prompting the board to view delisting as advantageous to eliminate listing expenses. Approval requires a shareholder vote, regulatory nods and South African Reserve Bank clearance, after which Sustent would hold a controlling interest in the infrastructure and renewables assets.
British American Tobacco projects 2% growth in revenue and earnings for 2025, supported by robust performance in the United States. Forecasts for 2026 remain at the lower boundary of prior guidance. Non-cigarette nicotine products, including Velo pouches, Vuse vaping devices and glo heated tobacco, are outpacing traditional sales, particularly Velo Plus in the US amid challenges from illicit vapes. The firm is generating solid cash flows, reducing debt and scheduling a R29 billion share repurchase for 2026 alongside progressive dividends.
Merafe Resources, in partnership with Glencore, has entered a memorandum of understanding with Eskom to negotiate a sustainable energy arrangement for ferrochrome production by 28 February 2026, potentially averting smelter closures. This extends the retrenchment consultation under Sections 189 and 189A to the same date, allowing further dialogue with unions and authorities. Meanwhile, the company's Project Phoenix restructuring initiative proceeds independently to optimize operations.
BHP has partnered with Global Infrastructure Partners to develop an inland power transmission network for its Western Australia iron ore activities. GIP will invest US$2 billion for a 49% interest in a dedicated power trust, while BHP retains operational control and commits to a 25-year tariff. This infusion supports expansion toward 305 million tonnes annual production, with flexibility for additional growth.
